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JulsSmile [24]
3 years ago
7

Scott Harris can invest $7,000 in a 1-year CD that earns interest at an annual rate of 4 percent compounded monthly. The amount

per $1.00 is 1.040742. He can also invest $7,000 in a 1-year CD at annual rate of 4 percent compounded quarterly. The amount per $1.00 is 1.040604. What is the difference in the amount of interest earned for each investment?
A) $0.96
B) $0.81
C) $0.87
D) $0.88
Mathematics
1 answer:
Tom [10]3 years ago
8 0

Answer:

option A  is answer.

Step-by-step explanation:

Amount of interest earned for compounded monthly  for $1 = 1.040742

Amount of interest earned for compounded quarterly for $1= 1.040604

Difference for $1  =   1.040742 - 1.40604

                 =0.000138

Difference for $7000 = $7000x0.000138

                                    = 0.966

                                      or $0.96

               

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Answer:


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Putting all of this together gives us:

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